Eliminating Cross-Shareholding Limits a Priority: Finance Minister

Strategic Planning and Finance Minister Kang Man-su said yesterday, “Among the variety of regulation reform efforts, my first priority is to eliminate the limits on cross-shareholding.” Kang, who stands at the center of several economy-related government agencies, stressed, “I will express my opinions without hesitation.”

In an interview with the Dong-A Ilbo, Kang made these statements at the Bank Assembly Hall in central Seoul, where he was temporarily working before officially assuming office.

In terms of the priority of reform efforts, he explained, “I’ll try to deregulate gradually. I’ll first ease regulations on laws which can easily be deregulated without amendments to the law.”

At his confirmation hearing held in the National Assembly, Kang explained, “It’s hard for the Korean economy to reach the six percent economic target. It is the responsibility of a government official to let the people know exactly the direction of policies as these issues are public, not private.”

His comment suggests that he plans to clearly express his opinion over the government’s economic policies, as a minister in charge of the nation’s strongest economy-related government agency. Finance ministers, under the Roh Moo-hyun administration, had been criticized for their failure to control relevant policies.

Kang added, “The Korean people have a keen interest in home taxes. The government will initially reduce capital gains tax on those with only one house and come up with effective measures to reform comprehensive property tax in the second half of the year.” However, he added, “We are not currently considering lowering the capital gains tax on those with two homes as a part of efforts to put more houses on the market.”

When asked whether the current interest rate prevents the government from adopting growth-oriented economic policies, Kang simply replied, “It depends on the Bank of Korea.” His reply came with some hesitation as it might have raised to doubts over the central bank’s autonomy.

“Economic worries have always existed,” Kang said. “By distinguishing what the government can do from what the government cannot, we will raise the economic growth rate.”

legman@donga.com